icefloe Announces $2Million Financing.MISSISSAUGA, Ontario For the First Nation, see . Mississauga (pronounced: [ˌmɪsɪˈsɑgə] listen -- Icefloe Technologies Inc. ("Icefloe") (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension VENTURE:ICY ic·y adj. ic·i·er, ic·i·est 1. Containing or covered with ice: an icy road. 2. Bitterly cold; freezing: an icy day. See Synonyms at cold. ) today announced it is undertaking a brokered private placement of 10 % Senior Secured Convertible Debentures Convertible Debenture Any type of debenture that can be converted into some other security. Notes: For example, a convertible bond can be converted into stock. (the "Debentures") in the amount of $2,025,000 (the "Private Placement"). The Debentures have a term of three years and are secured against the assets of Icefloe and rank ahead of all existing and future debt of Icefloe except for certain existing debt/lease arrangements. The Debentures will be issued in minimum amounts of $25,000 (a "Debenture debenture (dəbĕn`chər), document acknowledging indebtedness. In Great Britain a debenture is practically the same as a bond, and debenture stock is similar to preferred stock. Unit") and bear interest at a rate of ten percent (10%) annually, payable by way of an annual cash payment. For the first year of the Debenture, at the option of Icefloe, Icefloe may provide interest payment in kind by way of the issuance of common shares, at the lower of $0.60 per share or the Market Price (as defined by TSX Venture Exchange TSX Venture Exchange Originally called the Canadian Venture Exchange (CDNX), this was a result of the merger of the Vancouver and Alberta stock exchanges. The goal of TSX Venture Exchange is to provide venture companies with effective access to capital while protecting investors. ("Exchange") policies). In no event will the conversion price on the common shares issued as interest be less than the Market Price reserved for the Private Placement. In the second and third years, interest payments will be in cash only. Icefloe will have the right to fully redeem redeem v. to buy back, as when an owner who had mortgaged his/her real property pays off the debt. The term also refers to paying the amount due and all charges after a foreclosure (due to failure to make payments when due) has begun. the Debentures any time prior to maturity for a cash payment in the amount of the principal plus accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. and a maturity premium in the amount of $6,250 (the "Maturity Premium") for each Debenture Unit redeemed re·deem tr.v. re·deemed, re·deem·ing, re·deems 1. To recover ownership of by paying a specified sum. 2. To pay off (a promissory note, for example). 3. . If the Debentures are held to maturity, the Maturity Premium for each Debenture Unit will be paid to the Debenture holder in addition to the interest rate of ten percent (10%) previously described. Twenty-five percent (25%) of the aggregate gross proceeds of the Private Placement will be placed in escrow escrow Instrument, such as a deed, money, or property, that constitutes evidence of obligations between two or more parties and is held by a third party. It is delivered by the third party only upon fulfillment of some condition. and will released either as payment of the Maturity Premium if and when required or upon the attainment of certain escrow release conditions by Icefloe. The Debenture Units are convertible into Icefloe common shares at any time, at the option of the Debenture holder, at a conversion price of $0.60 per Icefloe common share over the first year of the term, $0.65 per Icefloe common share in the second year of the term and at $0.70 per Icefloe common share in the third year of the term. The conversion prices are subject to anti-dilution provisions Anti-Dilution Provision A provision in an option or a convertible security. It protects an investor from dilution resulting from later issues of stock at a lower price than the investor originally paid. that may reduce the previously mentioned conversion prices in certain restricted circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or ; however in no case shall the conversion price be less than the Market Price reserved for the Private Placement. Wingate Investment Management Ltd. ("Wingate") will act as broker for the Private Placement. Wingate will receive a cash commission in the amount of $148,000. Wingate will also receive an Agent's Warrant with a term of two years from the date of the issuance of the Agent's Warrant for 270,000 warrants each entitling Wingate to purchase one common share of Icefloe at an exercise price of $0.60 per common share in the first year of the term and thereafter reducing to 249,030 warrants each entitling Wingate to purchase one common share of Icefloe at an exercise price of $0.65 per common share in the second year of the term of the Agent's Warrant. The number of common shares of Icefloe issued and outstanding is currently 7,249,592 common shares. In addition, there are 1,028,300 options and 3,283,318 warrants outstanding, which if exercised would increase the amount of common shares outstanding by an equal amount. If the first year of Debenture interest is paid in common shares and the Debentures are converted in the second year of the term (which is the maximum number of shares expected to be issued pursuant to the Debentures, excluding the anti-dilution provisions applicable under certain restricted circumstances previously mentioned), a total of 3,825,873 further common shares would be issued. The Debentures and the common shares issuable pursuant to the Debentures will be subject to a hold period of at least four months from the date of distribution of the Debentures, pursuant to Exchange policies and to Multilateral mul·ti·lat·er·al adj. 1. Having many sides. 2. Involving more than two nations or parties: multilateral trade agreements. Instrument 45-102 - Resale resale n. selling again, particularly at retail. In many states a "resale license" or "resale number" is required so that the state can monitor the collection of sales tax on retail sales. RESALE. of Securities. The Exchange may also require a further holding period for some or all of the Debentures. The Private Placement is subject to completion of closing conditions and to the approval of the Exchange. Five related parties and insiders of Icefloe have indicated an intention to purchase Debentures in the Private Placement. YMG YMG Young Men's Group YMG Young Mersey Golfers Private Wealth Opportunities Fund ("YMG") will purchase Debentures in the principal amount of $300,000. If YMG converted all of these Debentures it would beneficially own, directly or indirectly, or exercise control or direction over 1,450,596 common shares of Icefloe or approximately 13.10% of the then outstanding common shares of Icefloe. Mr. Whit Tucker Whit Tucker was an all star receiver in the Canadian Football League. Tucker was an all star high school athlete in Windsor, Ontario. He received a track scholarship to the University of Southern California upon graduation, but ultimately decided to attend the University of Western will purchase Debentures in the principal amount of $50,000. If Mr. Tucker converted all of these Debentures he would beneficially own, directly or indirectly, or exercise control or direction over 388,466 common shares of Icefloe or approximately 3.51% of the then outstanding common shares of Icefloe. Mr. David Elliott will purchase Debentures in the principal amount of $25,000. If Mr. Elliott converted all of these Debentures he would beneficially own, directly or indirectly, or exercise control or direction over 47,233 common shares of Icefloe or approximately 0.43% of the then outstanding common shares of Icefloe. Mr. Wayne Newson will purchase Debentures in the principal amount of $75,000. If Mr. Newson converted all of these Debentures he would beneficially own, directly or indirectly, or exercise control or direction over 314,247 common shares of Icefloe or approximately 2.84% of the then outstanding common shares of Icefloe. Mr. J. Robert Furse will purchase Debentures in the principal amount of $25,000. If Mr. Furse converted all of these Debentures he would beneficially own, directly or indirectly, or exercise control or direction over 332,701 common shares of Icefloe or approximately 3.00% of the then outstanding common shares of Icefloe. In addition, Fallbrook Holding Limited ("Fallbrook") will purchase Debentures in the principal amount of $625,000. If Fallbrook converted all of these Debentures it would beneficially own, directly or indirectly, or exercise control or direction over 1,180,825 common shares of Icefloe or approximately 10.66% of the then outstanding common shares of Icefloe. All share ownership data in this paragraph is based on the assumption that interest in the first year of the Debentures is paid in common shares and that all of the Debentures are converted in the second year of the term. Further details regarding the Private Placement may be found in the documents filed by Icefloe from time to time on SEDAR SEDAR System for Electronic Document Analysis and Retrieval SEDAR Southeast Data, Assessment, and Review at www.sedar.com. ABOUT ICEFLOE TECHNOLOGIES INC. Founded in March 2001, Icefloe (TSX VENTURE:ICY) is a Canadian-based company dedicated to the development and commercialization of its proprietary chilling technology which brings flash chilling capability in a portable form and enables the beverage industry to serve ice cold draft beer without excessive foam loss, anytime and anywhere. Since April 2001, Icefloe has focused its efforts on securing patents for its platform technologies, while developing, field-testing, manufacturing and marketing commercial products using its unique technologies. Its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , Draught Guys Inc., provides installation, sales and service for both traditional draft systems and Icefloe's proprietary products in the Ontario market. For more information about Icefloe, please visit Icefloe's website at www.icefloe.com. Icefloe commenced trading on Tier 2 of the TSX Venture Exchange on April 14, 2004 under the symbol "ICY". The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. No Securities Commission or other regulatory authority Noun 1. regulatory authority - a governmental agency that regulates businesses in the public interest regulatory agency administrative body, administrative unit - a unit with administrative responsibilities having jurisdiction over Icefloe has approved or disapproved of the information contained herein. Certain information included in this press release is forward-looking and may involve risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors that might cause a difference include, but are not limited to, competitive developments, risks associated with Icefloe's growth, the development of the beverage market, regulatory risks, intellectual property infringement The encroachment, breach, or violation of a right, law, regulation, or contract. The term is most frequently used in reference to the invasion of rights secured by Copyright, patent, or trademark. and other factors. Unless otherwise required by applicable securities laws, Icefloe disclaims any intention or obligation to update or revise any forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , whether as a result of new information, future events or otherwise. More detailed information about potential factors that could affect Icefloe's financial and business results is included in public documents Icefloe files from time to time with Canadian securities regulatory authorities. Icefloe Technologies Inc. (TSX VENTURE:ICY) |
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